this is mostly a post to watch the shitstorm post but I might as well post in my stance. Just incase some loonie decides to use bay 12 as some kind of secret polling ground.
Modders should be able to be paid for their work if they desire. But if it requires another mod to work, even if the legaleze says it's free to use in other works a fair and reasonable modder should attempt to obtain explicit permission to use it in a sold product. There's no law that says you must, but there's also no law that says you have to hold a door for folks in a wheelchair at a restaurant it's just something most respectable people would do.
But steam, at least with their current implementation of this system, really should not be doing this. Steam doesn't seem the least bit interested in policing this kind of thing, and I don't think they would be willing to assist when a person suspects a copyright claim. Like someone said before, when the mods were free as a mod maker you could just download it to see if it's a copy. Now you have to pay someone else just to see if it's a copy, and if it is you probably won't get your money back unless you want to pursue legal action (and that's IF the scammer was successful in getting that first $100) and that's more money down the tube. Yea you can sue for legal fees too, but the court needs paid, often before you see anything yourself. And the whole time Valve and beth profit.
Don't get me wrong, I don't hate valve. There are worse companies out there, and attempting to make money is hardly a cardinal sin. But I really don't think they thought this through. And I hope it fails, valve pulls it soon, or they drastically change how they are doing it, because as others pointed out, this is just fostering all kinds of distrust.
A good paid system wouldn't scare the free modders into taking their stuff down in fear of theft. This is not a good system.